Membership Business Break-Even
A short fitness franchise decision problem. Use the supplied facts, commit to one action, then check your reasoning. Fictional practice; no leaderboard score is recorded.
Fitness franchise · breakeven and fixed cost
Fixed costs are $42,000 a month. Each membership brings $120 a month with $20 of variable cost. You currently have 380 members and are considering a second studio with the same cost structure.
| Given fact | Scenario data |
|---|---|
| Monthly fixed costs | $42,000 |
| Monthly membership revenue | $120 each |
| Monthly variable cost | $20 each |
| Current members | 380 |
| Second studio | Same cost structure |